As Bitcoin (BTC) gets closer to the “Golden Cross“, many cryptocurrency speculators are becoming ecstatic. When the short-term moving average crosses over the long-term moving average, this is known as a golden cross. Technical analysts frequently employ the golden cross as an indication, which is said to signal the beginning of a new bull market. Investors must pay attention to the moving average crosses because it is often a significant opportunity.
Why is this golden cross so overtly suggestive? Because it puts the current situation into perspective and begs the inquiry, “What recent events accelerated price action? Will it keep going? But how effective are they as forecasting devices? One thing is finding a cross of the moving averages and saying it is bullish.
Golden Cross Are Infrequent
The thing that stands out the most when examining Bitcoin‘s past is how infrequently golden crosses have appeared. Only six times since January 1, 2015, has the 50-day exponential moving average (EMA) surpassed the 200-day EMA. The most recent price is given more weight by the EMA. On the other hand, a Simple Moving Average (SMA) equally weights all data points. It depends on the user which one they prefer. On Ethereum (ETH), golden crosses are even more uncommon, only occurring just three times since 2017.
Ethereum is currently just 2.1% away from the Golden Cross, while Bitcoin is only 2.4% away. Thus, both are getting close to the cross. The challenge now is to ascertain whether the two crypto assets are approaching a noteworthy development or whether this is simply one issue. The outcomes are intriguing.
Ethereum is not Likely to Recieve a Bullish Sentiment from This
Bitcoin increased 4.4% during the following seven days and 9.6% over the following thirty days, according to the previous 50/200-day golden crosses. But you need to compare it to something else to be certain. How has Bitcoin performed over the last seven and thirty days? 1.6% for seven days and 7.5% for thirty. Therefore, the figures are lower than they were following the Golden Cross. There are historical advantages to the Golden Cross.
The golden cross is not a bullish omen for Ethereum, though. The typical price fluctuations after the golden cross are down 2% and 8%, respectively, during the next 7 and 30 days. The average price changes over the past seven and thirty days have increased by 1.5% and 7.3%, respectively. For Ethereum, a straightforward buy-and-hold strategy made more sense than one driven by moving average crossovers.
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